economic sytems

Question Answer
Economy The social science that deals with the production,distribution, and consumption of goods and services.
Bartering Exchange one good or service for another
Three questions and answered by economy what to produce?how to produce?for whom to produce?
traditional economy based on customs and traditions
command relies on government to make all the economic decisions.
market economic system based on trade and competition
capitalism economic system in which private owners control the production of goods and profit(free enterprise, market economy
supply how much people or how much is available
demand what or how much people want
specialization making a living doing what a person does best
mixed economy combination of government and private owned businesses
human capital a supply of who can produce goods and services
capital goods items that people need to perform their jobs
natural resources items that come from the world around us that we use for our own resources
entrepreneur people who take risk to start a business that hope to make a profit
literacy rate the percentage of people in a country who can read or write
gdp the average annual income of a nations citizens
standard of living level of comfort in everyday life
embargo bans on trading with anther country for political reasons
tariffs tax imported on goods
quotas number limit on how many items of a particular product can be imported from a particular country
currency moneyexamples: Canadian dollar, Brazilian real, Europe-euro's, Mexican pesos .
exchange rate converting one nations money into a equal value of another nations money

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